Consumer spending slid in March, although experts predict recovery is on the way. While consumption rose 0.9 per cent in January and edged up 0.1 spider man costume per cent in February, it dropped 0.2 per cent in March, on a month-by-month basis. Consumption rose 2.2 per cent over the quarter, on an annualised basis. The uplift in January can partly be explained by a rise in benefit payments and a fall in personal taxes in the month, according to the Economic Cycle Research Institute. Despite the fall in consumption, it predicted the US recession could end before the autumn, after enough of its key gauges indicated growth. Two office supplies retailers have experienced tumbling sales and profits in their first quarter. Office Depot revealed a net loss of$55m compared with profits of$69m last year. Total sales plummeted 19 per cent to $3.2bn . Like-for-likes in its retail division declined 17 per cent, as consumers reduced spending and the 1,064-store retailer reduced ad spend. Sales at OfficeMax slumped 17 per cent to $1.9bn in the first quarter, while earnings slumped from $62.4m to $13.1m . Like-for-like sales at its retail arm fell 12.7 per cent. OfficeMax operates more than 900 stores. Mexican retailers have witnessed a sales surge as President Felipe Calderon ordered all 103 million Mexicans to stay at home in a bid to contain swine flu. The five-day quarantine led to shoppers stocking up on food, DVDs and video games. In the northern city of San Luis Potosi, Blockbuster store manager Alfredo Zapata said rentals were going through the roof. "It’s doubled or tripled … even more in video games," he added. Store group Falabella suffered a profit fall in its first quarter as global economic turmoil took a toll. The retailer, which runs supermarkets, home improvement stores and department stores in Argentina, Colombia and Peru as well as its domestic market of Chile, reported like-for-like declines of zentai suit between 2.7 per cent and 10.1 per cent at its chains, apart from its Chilean supermarkets, which notched up growth of 3.5 per cent. The devaluation of the Chilean peso against the dollar hit department store margins and a property and construction slowdown undermined home improvement. Falabella, whose interests include malls and banks, posted a net quarterly profit of CLP38.84bn on sales up 7.7 per cent to CLP847.22bn . Pre-tax profits at grocer Metro plummeted almost 50 per cent in its first quarter to EUR84m . Sales also fell 2.5 per cent to EUR15.2bn in the three months to the end of March. Metro said sales were affected by the shift of the Easter business into the second quarter, as well as negative currency effects in Eastern Europe and the downward trend in inflation. It said that Easter sales had come in at a "gratifying level" and that sales in April were showing an upward trend. Kesko Group has recorded first-quarter sales dipped 11.4 per cent year-on-year to EUR2.02bn . The grocer’s underlying operating profit for the quarter fell by more than 90 per cent to EUR3.4m , from EUR36.6m . At its food arm sales rose 4 per cent. However, sales at its home and speciality goods arm dropped 5 per cent. Kesko said full-year operating profit will be below the previous year and the outlook for the near future "remains dim". Indian retail group Shopper’s Stop has revealed sales rose 9 per cent to INR3.5bn for the quarter to the end of March. The group – which operates large-format department stores, home stores and speciality retailers including Mothercare in the country – said margin for the quarter increased 4 per cent. Sales for the full year climbed 16 per cent to INR13.8bn . French retailer Carrefour is in talks with Indian giant Reliance Retail about forming a joint venture. Carrefour has been negotiating to operate in India in partnership with tycoon Kishore Biyani’s Future Group, but no deal has zentai been struck. The French group is now talking to other potential partners, including Aditya Birla and Spencer’s Retail as well as Reliance, Indian media reported. An unnamed Reliance Retail executive was quoted as saying preliminary discussions were held. Top global retailers Wal-Mart and Tesco have already forged partnerships with Indian groups Bharti and Tata respectively.

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